Liberia: Finance Minister Ngafuan Acknowledges Liberia’s Huge Debt as Economic Challenge, Assures Measures are Underway to Address It
Monrovia — Finance Minister Augustine Kpehe Ngafuan has acknowledged that Liberia’s rising debt poses a serious challenge to the country’s economic growth. However, he noted that, despite the challenges, the Ministry of Finance is working diligently to address the issue.
By: Francis G. Boayue, francis.boayue@frontpageafricaonline.com
Ngafuan noted that Liberia’s debt currently stands at a moderate $2.85 billion. To begin managing the situation effectively, the government would need to allocate $300 million annually. He added that the ministry is implementing various measures aimed at making progress on debt reduction.
Speaking to the Voice of America on the sideline of the ongoing World Bank and IMF annual meeting in Washington DC, Ngafuanannounced the successful acquisition of US$210 million from IMF under its Extended Credit Facility program, a key financial initiative aimed at bolstering Liberia’s economy.
This amount, he said will be used to boost the Central Bank reserve.
Minister Ngafuan, who previously served under former President Ellen Johnson Sirleaf and was reappointed by current President Joseph Nyuma Boakai following the resignation of Boima Kamara, stated that securing this funding was one of his primary goals since taking office just over a month ago.
“Liberia has been approved and received US$210 million from the extended credit facility program of the IMF, which will be disbursed within a 40-month timeframe,” Ngafuan explained, noting that the IMF team will arrive in Liberia to begin their review on November 6.
The Minister emphasized that the funds will significantly bolster the reserves at the Central Bank of Liberia, which is a crucial economic indicator.
He highlighted the necessity of maintaining reserves that can finance a minimum of three months of imports. Currently, Liberia’s reserve position allows for financing just over two months of imports.
“We are beefing up the reserves to meet that minimum threshold and demonstrate sound economic indicators to the world. This is not just budget support. It is specifically aimed at enhancing the central bank’s reserves,” Minister Ngafuan stated.
Minister Ngafuan also mentioned plans to replenish funds previously withdrawn from the central bank’s reserves by the government, with an allocation of approximately US$15 million to be included in next year’s budget.
In addition to the IMF funding, Minister Ngafuan outlined progress on the formulation of the national budget for the upcoming fiscal year and the development of Liberia’s new national development agenda. He hopes to launch this agenda through President Boakai before the end of the month.
Reflecting on his visit to Washington, DC, Ngafuan noted the importance of informing partners about Liberia’s progress and challenges.
“The challenges are significant, but we are facing them with determination and strong collaborative actions with our partners. Overall, the meetings have been productive, aiming to inspire confidence and consolidate the progress of the country,” he added.
With this financial boost and ongoing initiatives, Minister Ngafuan said he is committed to strengthening Liberia’s economic foundation and ensuring sustainable growth for the nation.
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